Ethiopia’s Economy Shrinks, Ending a Nearly Two Decade of Growth

Ethiopia’s Economy Shrinks, Ending a Nearly Two Decade of Growth

The International Monetary Fund (IMF) says Ethiopia’s economy has shrunk to 1.9% this year and likely will hit 0% in 2021. On the contrary, during the last session of the Ethiopian House of Peoples’ Representatives (HPR), Abiy bragged that Ethiopia’s economy has grown by 6.7% this year and he further said the average monthly income of an Ethiopian household level is about 1000 USD while a few days before that his Finance Minister Ahmed Shide said the country’s economy has grown by 7%. These vague claims have made ordinary citizens in a state of awe whilst also shade light on how Abiy and his cadres are detached from the people.
 
The data released by the IMF reflects the global drastic efforts to stamp out the coronavirus, which included restriction of movement, shutting down most factories and offices as the outbreak sickened tens of thousands of people. The coronavirus’s spread across the world has frozen the economies and has led economists to forecasts that the world’s output could shrink far more this year than it did even during the financial crisis.
 
Ethiopia was among few developing countries that have shown steady economic growth in the past two decades; however, since Abiy took over the power, the country was engulfed in political and humanitarian crises which in turn weaken its domestic production capacity and hasten the economic slowdown to its slowest pace since the early 1990s.
It is believed that the current economic downturn in Ethiopia is due to the coronavirus pandemic, unrest, and insecurity in the country, especially in Oromia the country’s largest revenue producer.
 
Needless to say, this isn’t the first time Abiy Ahmed has put his foot into his mouth with his controversial remarks and created an unnecessary outcry in the online community.
For the uninitiated, Abiy is notorious for making absurd comments and leaving us often confused about whether to doubt his sanity or laugh at his naivety.
SR News
IMF